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Two years ago, at a retirement dinner for outgoing Ford exec Nick Scheele, we asked if he really planned to give its attractive new Lincoln sedan a moniker so dated and strange sounding as Zephyr. He said he really did. We asked how long it would be until the company acknowledged this was a mistake and change it. Crickets…

The answer turned out to be one model year. Launched as the Zephyr for 2006, it becomes the MKZ for 2007. Unlike many Lincolns, the MK doesn’t mean “Mark”-it’s simply Em Kay Zee. But it’s more than a badge swap for a midsize luxury/sport sedan that, up until now, shared far too much with its less-expensive platformmates, Ford Fusion and Mercury Milan. Nothing against those cars, but little of substance, save for some trim and a few accessories, set the Lincoln version apart or justified its higher sticker. Like the name, that’s changed, and both for the better.

More punch is a great place to start, and it’s delivered by Ford‘s new Duratec 3.5-liter V-6. The 3.0-liter Zeph had 221 horsepower, the MKZ now packs 263. Torque increases from a paltry 205 to 249 pound-feet. The only transmission offered remains a six-speed automatic. Another significant option is newly offered all-wheel drive, which is growing in popularity in all luxury-car segments, and this $1875 “intelligent” system can adjust power delivery fore and aft and(using traction control) from side to side, simultaneously. The Zephyr’s suspension tuning was less than enthusiastic, so the steering feel has been improved, stiffer anti-roll bars installed, and firmer shock absorbers specified-all for better handling and response. The design team has sharpened up the grilleand a few details, and our roadtester featured nicely trimmed 17-inch alloys.

Credit Lincoln for giving us something more inside than just plastic. Leather seating surfaces are standard, and there are two interior treatments from which to choose: one looking clean and tech-like, with real aluminum inserts, and another, more traditional cabin treatment with maple trim that comes from actual trees. A few of the plastic bits are somewhat low rent, and the detailing isn’t up to the standard set by the ES 350 or an A4. But it’s a pleasant place to live and ride. Your stuff will be happy, too, as the 15.8-cubic-inch, flat-floored trunk is huge for a car this size. The driver and passenger will appreciate the optional heated and cooled seat bottoms, although riders in back will get no rear-area HVAC.

While there’s no additional charge for the THX II certified audiophile sound system, it’s worth the extra cash. It’s strong and clear, with a powerful and transparent sound. The large touch screen is easy to see and use. The DVD-based nav costs a somewhat excessive $2495, but the screen graphics are well-defined, and it makes an impressive package combined with the THX tunes, Sirius radio, and CD6 changer.

The power injection, AWD, and crisper tuning all make the MKZ a much more entertaining car to drive than was its ill-named predecessor. In spite of a 250-pound or so weight increase (due to the AWD hardware), the 3.5-liter engine can more than cover the spread. The previous Zephyr ran 0 to 60 mph in 7.6 seconds, the MKZ a much zippier 6.8. It’s also seven tenths quicker through the quarter mile. The engine sounds and feels good, and while not as polished as Toyota/Lexus or Honda V-6s of the same size, it’s class competitive.

The AWD and beefier suspension settings conspire for a significant 3.2-mph improvement through our slalom test. Where the old car felt soft and uninspiring, this feels more energetic and better pinned down, with improved grip front and rear. The MKZ’s ride is a teensy bit firmer than its predecessor’s, but the increased control and handling prowess make the miniscule trade-off more than a bargain. The transmission is a willing player, offering a gear for every occasion and smooth shifts, although there’s no manual control over its six ratios.

The Zephyr always came off as a quick-and-dirty badge job; a chrome-plated version of a less expensive Ford. The MKZ brings a unique powertrain offering, nicer duds, improved performance, and a more compelling value message. While the aforementioned Lexus and Audi models still lead by a hair in polish and sophistication levels, Lincoln is now legitimately in the game.

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